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tv   Street Signs  CNBC  April 8, 2013 2:00pm-3:00pm EDT

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> >> simon, we will see you back here tomorrow. we will see you back here with us. >> all the gold in the world. you would like to have it but how much gold is really out there. we have the number. plus the latest ranking at which airlines are the best and which are the worst. and back from china, here with a unique take on a few stocks that you need to hear about.
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>> good to be back. let's look at what's happening in the markets. the s&p is now in the black just marginally. if it does close down again today. let's get straight down to the trading floor. i'm going to mix things up just for fun and start with rick. what's happening over there? rick? >> we're still digesting the report and bank of america's statement and aggressive tendcies from thursday. and it's not just us. you're going to be talking about europe. the low rates.
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>> and a move to the upside. what's going on. >> that's right. we are just near the highs for the day. in fact, rick is right. the stock market is still digesting the poor jobs report and actually it's not that bad. we have had a turn around since middle of the day. transports up again today. mid caps up again. again, we are sitting right at the highs today. take a look, for example. look at these moves. we have a new sales report? airline stocks which had disappointment. we had delta with
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disappointments. they have been down the last couple of days. >> i'm glad you brought up airlines as well. we're going to be talking about the best and the worst of u.s. airlines. thank you very much. but thank you bob and rick. >> this show loves america. now we are questioning our love. because we believe in buying low and selling high we're looking at europe more closely. it looks cheap. maybe that makes it the perfect
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place for your money longer term. let's dig into that. >> there will be far fewer countries involved in the euro. as that process unwinds, i have a lot of fears about valuations even going lower and having a lot of profit.
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as it stands today. >> and frankly politically, they're going to do whatever it takes to keep that currency together. >> if you look at things like cyprus and now we're talking about lux burg is that a place you want to put your money? i don't know how big your stomach is. mine is not that big. >> if you argue about the east side of the equation, if
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earnings drop because consumers are out of work, they are taxed to death, whatever it might be, that ratio is going to go up. do you think that european earnings will continue to get worse before they get better? or will they get better at all? >> we fake care of the fact that there is currency in balance and handled through moving money. and i just don't see that happening in europe. so eventually this free money, this loose money that the ecb has been providing is going to stop working. there are going be a lot of earnings profit.
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in the meantime, i think that corporations by and large will struggle as long as this monetary union stays together in its current form. >> if they have a change in the way they implement. taxpayer dollars. you have got a situation where a currency is very rate cheap and germany is very, very expensive. >> finally they picked on the little guy. up until then, they are -- they had been given cash to whoever needed it. everybody gets a bail out that needs it.
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>> what the apartment today is if you look back at america in '09, we're doomed. people who held their nose and bought even though they didn't want to have doubled their money. you have to get past the fact that europe is in a recession. consumers are as scared as consumers are over here. is that a place to put your money? >> if you have a really good pin holding your nose, then maybe. >> if someone was going to get thrown out, wouldn't it already have happened? >> i don't think so. we keep putting band-aids on the problem.
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i don't know that it's a problem. whabs if the german economy does very, very well. how does the ecb respond to that? how do they take the punch bowl away in germany but not in spain? >> the point of this entire segment is supposed to be about analyzing the evaluation of the stock market. and steve said a bank that is willing to print money to ecb to backstop everybody could become cheap five years from now. five years. >> i completely get that it's your segment but let's do something that we do all the time.
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>> the american economy is not back to where it was and things are not all there. if you can project that down to europe, look at the european consumer. >> okay. we're going to leave it there. great debate. thank you very much. >> up next, the nation's best airline survey. who really dominates the skies? >> plus, what is really at stake for j.c. penney? and the battle with martha stewart. and we found the most delicious robbery ever. that's all ahead when "street signs" returns.
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>> take >> take a look at how some of the media stocks are doing today. 1.7% of bucking the stock trend for that sector. >> here is a disturbing story from our world there are now 5 million zero tv homes. skould cable providers be worried? should we be worried? a neutral rating. it sounds scarry, but is it? >> i don't think it's as scarry as it sounds. i think you should look at netflix and hulu.
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we're seeing it a bit on the video side. >> mind you, isn't there a silver lining for some table companies that could benefit from the vast shift because they still supply the pipes to get the streaming? >> it's exactly right. for the cable companies, there, you know, the primary revenue is high speed data. there is a way to get back some of the revenue. that is a good story for them. >> there is always going to be people who don't want phones or tv. is this a growing sector or not? the stock has doubled a little.
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>> i think it's a pretty healthy sector. as you point out, these stocks have had nice runs. and our judgment, the valuations were at recent peak levels. we're not overly concerned about streaming. >> are there any that stand out in terms of more favored or less favored? >> as we looked at the stocks, we probably favor comcast and charter a bit. but gempb you look a case and
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they have been very popular on the street. >> thank you very much. any time you want to come on the show and say the cable is going to be okay long term, we will have you on. we will get to this conversation. there is a report out there. this just broke. news corps is considering taking the fox broadcasting network, home of the simpsons off over the air tv and making it a cable network. this an attempt to stop pirates from putting their shows online. that would be big news if fox five became a cable channel. >> absolutely. >> you heard about the worst rating airlines. phil lebeau joins us with the best.
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>> people are talking about whether it is as bad. >> two bright spots. first of all, airlines did a better job in the last year handling baggage. so that's a bright spot. the airlines did substantially better. the flights were on time here in the united states and increasing almost 2%. what were the top five airlines according to the airline quality rankings? number one? virgin america. >> that are all low cost carriers. these are airlines that started out providing low fares. they still provide very good value but they are clearly doing a good job in matching customer
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expectations, on time performance, baggage delivery and things like that. >> jet blue and delta. delta is showing that you can be a legacy carrier and do well. both of these stocks performing well over the last year up between 35 and 45%. guys? back to you. >> i can't help but thinking maybe people's expectations are too high. was there anything that made you go wow? >> it's not necessarily who was at the top of the list or the bottom. it pretty much stays in line with what it has been in the past. but delta does not get enough credit for the job that it has done.
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you're a legacy carrier so you don't get good service. >> two things quickly. delta does have wifi on most planes which is a big deal. united does not. how much of this could be where people are going. i'm thinking people are happy. they're going to hawaii. they're not going to be mad at the airline. i'm going to have a luau. >> and you have fewer cancelled flights because you have less troubleso troublesome weather. if you're stuck in boston or new york because of the snowstorm, you're going to blame the airli airline. >> i have never ever been out of new york or newark on time. never, ever been out on time. >> 81% number is total garbage. about 8% for me. >> thank you.
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delta, which is of that. >> how do you qualify to be an ultra vip? can you be a d-list celebrity? or do you have to be a b-list celebrity. >> it's fantastic. >> just ahead on street signs, gold is down again today. it is down more than 11% since november. >> but first, pop quiz time. how much gold do you think there is in the world according to one very widely read report? 3.7 million pounds? 37 million pounds?
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377 million pounds or none of the above? we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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>> hi, sharon. >> we're looking right now at a slight pull back in the gold market. we're looking at gold down about three bucks or so. keep in mind technically traders say that gold is still in bearish territory.
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>> sub prime may have something to do with what happened to the gold prize as well. all told there is about 377 million pounds of gold in the world right now. that is not including what we're seeing or part of what we're seeing in that number is the mining production. record level last year according to the 2013 gold survey. i it's below where the mining levels have been. that is something that traders are looking at as also supportive of gold prices. that is according to that one sur vai. many investment houses have lowered their price forecast for goldman sachs saying that who knows when the fed will stop. >> sharon, thank you very much.
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well, we gave you a trivia question going into the break. how much gold is there in the world. according to one report, it is c, 377 million pounds. if you put it together you would fill a 68 square foot cube. that's about the size of length of one blue whale but about the weight of 1,000 blue whales. >> to me, anyway, not to sound like a rich guy, doesn't sound like that much gold. >> i think it's irrelevant.
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>> instead of talking about prices per ounce. there is not quite enough gold to make it a real currency. i'm more interested in . >> gold has no value. you can't eat gold. why is it so valuable? i don't know. as long as the real currencies are on the slippery slope that they are.
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>> is it just inflation or is it a stronger dollar? >> that's a great question. the dollar has been rallying mostly consequence of the japanese yen getting just pounded. to me you look at that story and say if one of the safe haven turncies, and that makes gold more valuable. maybe it should be a gold tail wind. just to be safe, i will start selling. and then that cascades into a real live correction.
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>> the answer i keep coming up with is after such a long rally, market position plays a huge role in this. people just probably at the end of the day think they have too much gold and have to get out of it. keep in mind it is more of a currency story than anything else. ether way, it's a currency story and a market position story. >> outside of that, you know how much i respect you. you're right about more things than you're wrong. but you're also an insane man. from what i understand you're re-opening a restaurant in your hometown. have you gone -- >> when you taste the ribs you want to write a poem about it. >> i am getting a restaurant. >> you won't be sorry. thank you for the plug.
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>> and maybe you can support the gold price by selling really nice desserts like ice cream with gold leaf. >> that's not a bad idea. >> shots of gold sclagger. >> i think they must have used gold as materials over the past few months. my shoulder hurts from throwing money at this. >> 1,000 feet. >> some serious breaking news. the senate has just confirmed that mary joe wright is chair of the sec. congratulations to mary joe wright. >> lots of congratulations are around today. the gang's all back. the gang is back together. we have got a rapid fire edition of "street talk". >> and by gang we mean
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greenburg. he was in china for like six months. look at that going through his receipts. we're going to see herb in a few minutes. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.
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>> it >> it is 2:30. so it must be treat stalk. let's look at ican enterprises. >> nearly 10% gain. andrew berry making the case as a way to invest. it's an mlp. it's only got about ten holdings. keep in mind, iep has not done anything. and it took off. >> ignore, ignore. buy, buy, buy. >> best buy is down a little bit. live tv. it is now slightly higher. >> i believe that's a cnbc stock
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strap right there. >> which was your stock. >> stock sored. yes it has. but bernstein coming out and raising their target. however they are saying they are not convinced the company can achieve the more than $700 million in savings that they need to reach the forecasts that are out there. look at that run. >> look at that. we don't actually look at this very often. what's it up to? ten virginia? it is down. >> it is down quite a bit. so target is like two bucks more. they're concerned about increased leverage. to ease balance sheet concerns?
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>> we're also taking a look at a tiny company but this is what we do. we find the things that other people do not. >> we do. it's a couple hundred million. here is the reason we're talking about it. >> bill gates? needs no introduction. >> gave this company 18 million bucks to help develop drugs for diseases. very hard to treat, rare, sort of impoverished nation diseases. it's a good deed by bill gates. very heavily traded today. >> okay. ♪
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>> we will do it next time. >> when you were gone, there were a bunch of stocks that we like to follow in the news. you were not picking up your phone. >> i was watching. >> you didn't write. you didn't call. you didn't e-mail. >> not even a fax. >> do you know how frustrating it is to see this news hit and not be able to do anything about it? >> what stuck out to you most? >> this is carl icon. it's like it is going down my list of companies that i have red flagged. look, this is a company it's big positives that have monopoly. that's a good thing for it and shareholders. if this is a commodity business, voice recognition is becoming a commodity business. there is competition.
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google and microsoft have their own software in the space. and i think this is perhaps one of those issues where my guess is, i'm intrigued. >> i would have gone. that was when the sec came out and finally did the right thing. that was a good thing. >> the terrible thing, the worst idea that i have ever heard. we had your girl who said the same thing. dude, we're totally missing earnings. >> companies can and are using and can use social media and twitter to say here is our press release. if you read the sec advisory on this in the press release, they make it very clear that personal website pages and personal social media sites of
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individuals are not the proper use of dissemination. that's where this will still become a problem. i don't want to be on facebook. i started hating my friends. i got to sign up because god forbid a company releases material information. >> when they put it on facebook, they should also have an sec filing and a proper press release. it should be a proper way to put out a press release. you will see companies going overboard. has there ever been a serious -- at loost there have been offenses. are they going to nab somebody for that? the answer is no. >> i did miss you. >> i missed you, too. >> sort of. >> i want to rub your back,
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herb. >> ew. >> let's get more from the fox story. julia, what is fox threatening to do? >> here is the situation. the broadcast networks have been in a legal battle over streaming tv service. it pulls down the broadcast signal. it does it via miniantennas. issued a statement saying we believe the area is pirating our broadcast signal and will pursue in court. no choice but to develop business solutions to be an alternative to deal with the likes saying one option would be converting the broadcast network to become a paid channel which we would do in dlab ration. i mean, fox already is paid retransmission fees by the contributors. so it wouldn't necessarily be a game changer.
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but it does speak to the fact that sit a major disrup tore in the space. >> interesting story. thank you very much for keeping on top of it. >> still ahead, the most delicious hazelnut heist ever. >> and i have a big surprise for brian. you have got stick around to find out exactly what it is. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
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>> your daily deuce -- deuce. i was trying to do an australian accent and i blew it. now in honor of mandy's aussie vacation, your daily dose of news from down under. the queen of the show is back on monday. mandy will be returning from australia. there you go. >> queen of the kangaroos, maybe. i feel very honored. >> i said daily deuce. you know what? i think it's depressing and
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still one of the most lingering images of australia is from the 80s movie, crocodile dundee. i couldn't bring back a knife because no one can do that on a plane. but i did bring back this for you. >> a present on television? i'm nervous. >> be very, very afraid. a crocodile dundee hat. >> you know, this is not really texas, but i'm going to houston tomorrow. >> it might come in handy. there we go. good day. >> my ears make it difficult to wear hats like this. >> it's an extra large so you can tuck the ears in. >> beverly hill billies or something? >> it has ear pouchs. >> that's enough on the ears. >> there is a new miniseries starting this week and it's called australia's first 4 billion years.
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tell us what did you learn about the origins. >> i think one of the most interesting things when people think about australia. that's true and it is a young nation but it is an extremely ancient continent and what you can learn is the entire history of the country. it's all laid out in front of you. you have just got to get out of the outback and drive around and see it. >> is there anything we will learn that we have never learned before? ground breaking information about the origins of where we have come from? >> the main thing is putting it all in context. we go the earliest parts of the continent. we find tiny christals which are
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4.4 billion year s old. that's older than anything else we have found part of the original earth. as far as we know some of those most ancient continents, part of it was in western australia. just litting things like the origin of life. when and where that happens. how plants and animals co-managed the surface of the earth and turned it into the place we live and love today. there is no better place to do that than in australia. >> australia used to be part of the same land mass as north america and i understand, according to your research, we may once again be reconnected? >> look, we have been joined at
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the hip before, that's for sure. a lot of australia's history was north of the equator as the continents moved around. and we ripped apart, they have been reforming and moving apart through history. if you do the gps measurements, you can see the direction that australia is moving and most of the rest of the world. we are heading towards you at the rate that things grow. just give us another 30 or 40 million years and we will probably crash back into north america. >> don't expect to assume the brace position just yet. >> don't hold your breath.
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>> you may not believe what is at stake for j.c. penney in it loses its battle for martha stewart. this bad thing may be in a giant pack age. >> plus a group of sticky fingered thiefs may have made off with the most delicious heist ever.
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thieves in germany pull off what may be the most delicious heist ever. police say robbers stole 5 1/2 tons of nutella from a parked trailer in central germany over the weekend. stacks of chocolate hazelnut spread valued at more than 20,000 bucks. authorities say it isn't the first time thieves hit the area. several tons of red bull were stolen from the same spot a couple weeks ago. clearly a string of jacked up thieves. caffeinated and then chocolated up. what's next? marshmallows? >> their eyes are shaking.
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jacked up on sugar. jc penney and macy's are back in court today in the battle over martha stewart. courtney reagan, what's the latest on this? >> reporter: mandy, the three weeks judge owing originally allotted for the trial ran out and the parties were nowhere close to a resolution. the judge had to break, hear other cases. they went into medication for a mon -- mediation for a month. macy's lawyers allege jc penney is currently in violation of the injunction. they asked if they could pull up the jc penney website and point out products like the martha stewart plastic pitchers and martha stewart plastic champagne flutes on sale at jc penney. lawyers argue they can't do this. this is part of our exclusive category. the judge said talk to your clients, figure it out. if you can't, i will. urging the parties to settle it for themselves. we spoke to charles koppelman, former martha stewart living chairman. he did testify the day that the
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judge sent this trial into mediation to see exactly what he thinks about everything that's going on here. >> i think the beauty is that when this is all over, martha's designs will be in macy's and they'll be in jc penney and they'll continue to be in all the other places that they're currently in. i think a lot of personal is now involved in this trial. and this should have been just resolved and settled before we even got here. >> reporter: and we know that's a lot of it when it comes down to it. this is big personalities going to battle. no one seems to want to back down any time soon. mandy and brian, back to you. >> courtney, thank you. let's bring in friend of show jan rogers. are you going to have millions of dollars of stuff in a warehouse? >> they already have millions of tons of stuff in a warehouse. >> more stuff that they are legally not allowed to sell? that's expensive. >> we'll see. 30% of the product in home was originally scheduled to be martha stewart in some form or another. martha stewart celebrations,
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martha stewart pantry. probably both of those are okay. they'll probably be able to run those. everything else they decided to change the name to everyday jcp. or jcp everyday. that was going to be martha design stuff. that's the stuff that's sitting in the warehouses that we're all going, hmm, will that still be sitting in the warehouses or will they be able to sell that after this lawsuit's over? >> i've got two questions. what is the worst case scenario for jcp? secondly, what do you think st most likely outcome for jcp? >> i think the worst case scenario is that about 15% of the product in the store, which is half of what the home business would have been, suddenly can't be sold and they have about 75 to 90 days to get stuff back in stock and they have to figure out some alternative place to sell this stuff at 25 cents on the dollar and get rid of it. that's the worst case scenario. the best case scenario at this stage, i think, is that martha celebrations, which is home paper products, which is already open in at least one store that i saw last week, and that
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martha's pantry which is food stuff, they don't touch. and that they say as long as it doesn't say martha on it you can sell the rest of the stuff. and they get to sell jcp everyday. that's what i've always assumed would happen. because it's really -- courts hesitate to tell designers they can't do things. this is just one judge. it's one bench trial. a lot of liars throw a lot of stuff around, who knows. anything can come out of it. >> and a lot of money. >> and a lot of money. >> thank you very much. appreciate your insight, bud. still ahead, road trip time. we're going to tell you where "street signs" is headed for the rest of the week. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this.
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♪ all all right. mandy has to prep for "closing bell." here's what we're doing tomorrow. i'm heading out tonight. three cities, three days. houston, san diego, minneapolis. we're literally doing, like, what is that? sort of a rounded triangle of the united states. careerbuilder.com says two of those cities had the biggest year over year growth in jobs the first quarter. those were minneapolis and also san diego. houston doing very well. we're finding innovators, business leaders. we're talking about not just oil and gas in houston, folks. kind of the like the bolo thing. that's the stereo type. houston a technology leader. local business owners who are doing the shows from restaurants and bars. we're going to have a great time on the road tri

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